Grameen Bank founder and 2006 Nobel Peace Prize Winner Dr Muhammad Yunus recently announced the support of the Germany-based Yunus Social Business Fund for social businesses in Haiti through a mix of loans and equity. Funded projects include two poultry farms, a bakery and a plantation of jatropha plants used for biodiesel fuel. Each project receives between USD 80,000 to USD 500,000, while those receiving loans rather than equity investments are slated to pay interest rates ranging from six percent to ten percent per year. To qualify for funding, projects must have both a social mission and income-generating activities.Information on the total amount of funds offered is not available.
The Yunus Social Business Fund, formerly known as the Grameen Creative Lab, opened an office in Haiti after the January 2010 earthquake. It was founded in 1999 as a joint venture between the Bangladeshi Yunus Centre and German consulting company Circ-responsibility.
By Mihaela Grindeanu, Research Associate
About Muhammad Yunus: Dr Muhammad Yunus is a Bangladeshi banker, economist and Nobel Peace Prize recipient. As a professor of economics, he built on the concepts of microcredit and other forms of microfinance. Dr Yunus is also the founder of Grameen Bank, a Bangladeshi microfinance institution. In 2006, Dr Yunus and the bank were jointly awarded the Nobel Peace Prize.
About the Yunus Social Business Fund: The Yunus Social Business Fund, formerly known as Grameen Creative Lab (GCL), was founded in 1999 as a joint venture between the Bangladeshi Yunus Centre and German consulting company Circ-responsibility. It is based in Germany and aims to fight poverty by accelerating social businesses, which Dr Yunus defines as companies that serve social needs and reinvest their profits in themselves rather than paying dividends to shareholders. The fund’s three main activities are advocating in favor of social businesses, further developing the idea of social business and assisting companies and investors in the creation of social businesses. Financial information for the Yunus Social Business Fund is not available.
Sources and Additional Resources:
Washington Post story: “Nobel peace laureate Muhammad Yunus announces financing for ‘social businesses’ in Haiti”, http://www.washingtonpost.com/world/the_americas/nobel-peace-laureate-muhammad-yunus-announces-financing-for-social-businesses-in-haiti/2012/10/13/c126e3ae-1569-11e2-9a39-1f5a7f6fe945_story.html
MicroCapital Story, April 29, 2012: “MICROCAPITAL BRIEF: Dr Muhammad Yunus, Indian Institute of Management – Ahmedabad to Raise $10m for Social Business in India”, https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-indian-institute-of-management-ahmedabad-to-raise-10m-for-social-business-in-india/
MicroCapital Story, September 8, 2010: “MICROCAPITAL BRIEF: Muhammad Yunus, Nobel Laureate and Founder of Microfinance Institution Grameen Bank, Promotes Social Business Fund Concept for Haiti”, https://www.microcapital.org/microcapital-brief-muhammad-yunus-nobel-laureate-and-founder-of-microfinance-institution-grameen-bank-promotes-social-business-fund-concept-for-haiti/
MicroCapital Universe Profile: Muhammed Yunus, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Muhammad+Yunus
MicroCapital Universe Profile: Grameen Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank
MicroCapital Universe Profile: Yunus Social Business Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Creative+Lab
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